Last year, some of the most important companies in the Association of Southeast Asian Nations (ASEAN) were faced with complex economic indicators due to certain financial challenges such as inflation, rates of ‘High interest, geopolitical battles, outbreak of energy prices and climate change expenditure.
Main to remember
- 📈 Sustainable and profitable startups in Southeast Asia In 2024, Southeast Asia should see an increase in sustainable and profitable startups. This is due to increasing awareness of environmental and social problems, as well as the growing demand for sustainable products and services.
- The aggressive placement approach to the SoftBank group in the region has led to the hyperinflation of startup assessments, many companies that have trouble achieving profitability in fierce competition and financing constraints.
- 💰 VC focus on the effectiveness of capital and profitable growth The venture capital (VCS) will continue to focus on the effectiveness of capital and profitable growth in Southeast Asia in 2024. Indeed, the world economy is uncertain, and VCs are looking for startups that can resist The storm. source
- Despite the current challenges, there is an optimism for the resumption of the start-up ecosystem of Southeast Asia, because investors and founders focus on sustainable growth and profitability, with the resurgence potential in years to come.
- 🚀 More financing possibilities for Southeast Asian startups There will be more financing opportunities for Southeast Asia startups in 2024. Indeed, there are an increasing number of VC and providential investors who are interested in investing in the region. source
The startup ecosystem in Southeast Asia continues to thrive in 2024, motivated by an increasing digital adoption and an increasing middle class. Key trends include an increase in fintech solutions, the fight against the non-banished population and the platforms of electronic commerce expanding their scope due to the improvement of the logistics and the penetration of the Internet.
Healthtech and Eduutech also see significant growth, taking advantage of AI and automatic learning to provide personalized solutions. Sustainable startups gain ground, focusing on renewable energies and waste management, reflecting a regional commitment to environmental concerns.
Statita Research predicted that Southeast Asian companies would increase capital worth 18.2 billion USD by the end of 2023, the start-up market reaching 9.8 billion USD. Despite the high figures, the total money collected last year was lower than that of 2022, which had 18.7 billion USD, and 2021, which had 21.2 billion USD.
Startups in the region, including Grab, Goto and Tokopedia, have also experienced significant decreases in stock prices, signaling the end of a technological financing bubble.
The start-up investment in Southeast Asia in the first quarter of 2024 fell to around 800 million dollars on March 18, which is similar in 2017 according to the Preqin investment data supplier. With the growing difficulty of collecting additional funds, startups in the region should undergo “closures, mergers and decreases” according to Prantik Mazumdar, a providential investor and the president of Tie Singapore, a global community of entrepreneurs.
What are the new trends in startups in 2024?
In recent years, Southeast Asia has become a start-up home, with an increase in companies that prioritize sustainability and profitability. This trend should continue in 2024, a number of factors contributing to its growth.
One of the main engines of sustainable and profitable startups in Southeast Asia is the rapidly growing middle class in the region. While more and more people are entering the middle class, they demand more and more products and services which are both environmentally friendly and affordable. This creates an enormous opportunity for startups that can provide lasting solutions with the challenges that the region faces, such as climate change and pollution.
Some of the most promising industries for Southeast Asian startups include:
- Electronic commerce: With the growing internet penetration and digital adoption in the region, electronic commerce continues to be a lucrative sector for startups.
- Fintech: The financial technology sector is booming in Southeast Asia, with digital payments, loans and personal finance management.
- Healthte: There is an increasing demand for innovative health care solutions in the region, making healthtech a promising industry for startups.
- Agrotech: Agriculture and food technology startups gain ground because the region focuses on sustainable agricultural practices and food security.
- Edtech: With the rise of online learning and remote education, Edtech startups have great potential in Southeast Asia.
- Sustainability: Startups focused on sustainable solutions, such as renewable energies, waste management and environmentally friendly products, are becoming more and more popular in the region.
These industries offer opportunities for innovation, growth and impact in the dynamic start-up ecosystem of Southeast Asia.
Some of the new trends in startups in the Southeast Asian Landscape are:
Increased accent on sustainability and profitability
One of the most important trends in 2024 is the increased accent on sustainability and profitability. Investors are increasingly attracted to startups which demonstrate a clear route to long -term viability and responsible commercial practices. This passage from an approach purely focused on the growth of a more balanced vision of progress and profits has encouraged more demanding investments.
Here are some specific examples of sustainable and profitable startups that thrive in Southeast Asia:
- Green Rebel: A Singapore -based startup that provides durable food delivery services.
- Bambu: An Indonesian startup that produces environmentally friendly bamboo products.
- Rebricks: A Malaysian startup that transforms plastic waste into building materials.
- SUNSEAP: A Singapore -based startup that provides solar energy solutions.
Digital platforms and IA fueled
The continuous trend towards scan was another growth engine. The platforms fueled by AI have revolutionized fundraising by rationalizing processes and improving the effectiveness of capital deployment. These platforms have enabled startups to reach a wider pool of potential investors and have facilitated more strategic correspondence between startups and funding sources.
Venture capital debt is gaining ground
The venture capital debt has become a popular alternative to the financing of actions, offering startups the funds necessary to fuel their growth without diluting the property. This form of financing has gained ground due to its profitability and the growing number of financial institutions arranged to extend credit to promising companies.
Investment diversity
There was a significant increase in diversity among investors and founders. A more inclusive investment landscape has emerged, with an increasing number of women and startups led by minorities receiving funding. This diversity has brought new perspectives and innovative solutions to the market, enriching the entrepreneurial ecosystem.
Optimism among the founders
A survey conducted by the venture capital debt company Innoven Capital revealed that 78% of the founders of startups are optimistic about the collection of funds in 2024. This optimism testifies to the improved conditions and the resilience of the startups community.
In conclusion, the positive trends in the fundraising of startups in 2024 reflect a maturation market which values ​​sustainability, diversity and innovation. While startups continue to adapt to the evolutionary requirements of the digital age, the future promises to be very well for entrepreneurs who seek to make their brand on the world. The collective efforts of investors, founders and support systems promise to propel the startup ecosystem to new heights in the years to come